27. Deferred Income Tax

The deductible and taxable temporary differences in respect of which deferred tax has been recognised are as follows:


	2017 €m		2016 €m

Reported in balance sheet after offset

Deferred tax liabilities		1,666		2,008
Deferred tax assets		(95)		(159)
Net deferred income tax liability		1,571		1,849

Deferred income tax assets (deductible temporary differences)

Deficits on Group retirement benefit obligations (note 28)		72		119

Revaluation of derivative financial instruments to fair value		7		12

Tax loss carryforwards		132		150

Share-based payment expense		29		38

Provisions for liabilities and working capital-related items		157		350

Other deductible temporary differences		145		83
Total		542		752

Deferred income tax assets have been recognised in respect of all deductible temporary differences, with the exception of some tax loss carryforwards. The amount of tax losses where recovery is not probable and is therefore not recognised in the Consolidated Balance Sheet is €1.5 billion (2016: €1.4 billion). The vast majority either do not expire based on current tax legislation or they expire post 2022 (2016: 2021).


Deferred income tax liabilities (taxable temporary differences)

Taxable temporary differences principally attributable to accelerated tax depreciation and fair value adjustments arising on acquisition (i)	2,089	2,569

Revaluation of derivative financial instruments to fair value	11	18

Rolled-over capital gains	13	14
Total	2,113	2,601


Movement in net deferred income tax liability

At 1 January	1,849	1,874

Translation adjustment	(173)	41

Net income for the year (note 11) (ii)	(265)	(15)

Arising on acquisition (note 31)	132	(35)

Reclassified as held for sale	(14)	-

Disposal (note 5)	2	(1)

Movement in deferred tax asset on Group retirement benefit obligations	33	(3)

Movement in deferred tax asset on share-based payment expense	7	(12)
At 31 December	1,571	1,849

(i)	Fair value adjustments arising on acquisition principally relate to property, plant and equipment.

(ii)	The net income for the year includes an expense of €1 million (2016: €2 million) relating to discontinued operations.